Italy Removes San Marino from its Black List

The end of July 2013 marks a great success for San Marino. The official removal of San Marino from the Italian black list took place on the 31st of July, 2013.

San Marino changed significantly in the last years. The Government of San Marino approved several bills to fight terrorism and money laundering and to improve its legislation. San Marino has signed Double Taxation Agreements and tax information exchange agreements with a number of countries, including Canada, South Africa and China, Vietnam and Barbados, and has been able to change its internal regulations to guarantee transparency within its economic system.

San Marino has been trying to persuade Italy to go ahead with ratification of the Double Taxation Agreement between these two countries for a long time, but there were delays because of the Italian general election and then the forming of a new Government. However, the last Italian Government led by Mario Monti picked up the matter and has managed to see it through the parliamentary committees.

The re-negotiated Double Taxation Agreement follows the most recent framework for the exchange of tax information and the overcoming of bank secrecy, and contains provisions for withholding taxes on dividends, royalties and interest that will be effective from January 1, 2014.

Also, an obligation is introduced for San Marino’s Government to monitor the movement of capital between Italy and San Marino, as well as businesses set up with an interest in the profits or dividends of Italian companies.

The removal of San Marino from the Italian Black list will have a great meaning for this country.

Source: www.tax-news.com